Following reports saying that Tesla is talking with the Indian government about making cars in India, BYD, the arch-rival of Tesla in the global EV market, is reportedly eyeing forming a joint venture and setting up manufacturing facilities in India where the EV sales have been surging in recent years.
Reuters quoted sources saying that BYD has presented a US$1 billion investment plan to form a joint venture with India-based Megha Engineering and Infrastructure to make EVs and batteries in India as well as set up charging stations and an R&D center in India.
According to The Economic Times, BYD and Megha Engineering and Infrastructures plan to set up a manufacturing facility in Hyderabad with an annual production capacity of 10,000-15,000 units of electric four-wheelers. Unnamed officials told The Economic Times that the Department of Promotion of Industry and Internal Trade received the proposal.
The Economic Times quoted an unnamed official saying that investment for the project is going to be made by Megha, and BYD will provide technology and know-how.
However, the Times of India quoted sources saying that both the Ministry of Home Affairs and the Ministry of External Affairs are uneasy about the BYD's joint venture plan as the Indian government has been cautious about incoming investments from land-bordering countries like China. Sources told the report that many joint ventures, which include China-based companies, are primarily controlled by the Chinese partners, with the Indian counterparts having little control over technology or decision-making.
BYD entered the Indian market in 2007 to make components for mobile phones before forming a joint venture, Olectra Greentech, with Megha Engineering in 2013, making electric or plug-in buses.
According to BYD's annual report for 2022, it is speeding up its overseas market expansion. BYD's cash paid for the purchase and construction of fixed, intangible, and other long-term assets increased from CNY109.856 million in 2021 to CNY221.844 million in 2022. BYD surpassed Tesla, becoming the world's top NEV (including hybrids) carmaker. Tesla is also reportedly talking with Inda to bring its component partners to India and build a local ecosystem.
